The Analytical Overview of the Main Currency Pairs on 2018.07.04

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.16386

Open: 1.16552

% chg. over the last day: +0.15

Day's range: 1.16622 – 1.16798

52 wk range: 1.0571 – 1.2557

During yesterday's trading session, the bullish sentiment was observed on the EUR/USD currency pair. The euro strengthened after the resolution of the disagreements in the EU government regarding the migration issue. At the moment, the technical pattern is ambiguous. Local support and resistance levels are 1.16500 and 1.16800, respectively. We recommend opening positions from the key levels.

The news feed on the economy of the Eurozone and the US is calm.

The price has fixed above 50 MA and 200 MA, which indicates the power of buyers.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy EUR/USD.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which signals to buy EUR/USD.

Trading recommendations

Support levels: 1.16500, 1.16100, 1.15700

Resistance levels: 1.16800, 1.17100

If the price fixes above the resistance level of 1.16800, the EUR/USD currency pair is expected to grow. The movement is tending to 1.17100-1.17300.

Alternative option. If the price fixes below 1.16500, we recommend looking for entry points to the market to open short positions. The target movement level is 1.16100-1.15900.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.31459

Open: 1.31891

% chg. over the last day: +0.40

Day's range: 1.32014 – 1.32229

52 wk range: 1.2361– 1.4345

During yesterday's trading session, the bullish sentiment was observed on the GBP/USD currency pair. Positive statistics from the UK supported the pound. In June, the index of economic activity in the construction sector counted to 53.1 and was better than the expected value of 52.5. At the moment, the key support and resistance levels are 1.31850 and 1.32300, respectively. We recommend opening positions from these marks.

At 11:30 (GMT+3:00), the index of economic activity in the UK services sector will be published.

Indicators do not send accurate signals. The price is testing 50 MA.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy GBP/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is crossing the %D line. There are no accurate signals.

Trading recommendations

Support levels: 1.31850, 1.31400, 1.30900

Resistance levels: 1.32300, 1.32800, 1.33200

If the price fixes above the resistance of 1.32300, the GBP/USD quotes are expected to grow. The movement is tending to 1.32600-1.33000.

Alternative option. If the price fixes below the already "mirror" support level of 1.31850, it is necessary to consider sales of GBP/USD. The movement is tending to 1.31400-1.31000.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.31834

Open: 1.31381

% chg. over the last day: -0.33

Day's range: 1.31255 – 1.31567

52 wk range: 1.2059 – 1.3795

Yesterday, sales prevailed on the USD/CAD currency pair. Quotes fell by more than 70 points. At the moment, the trading instrument is consolidating. Local support and resistance levels are 1.31400 and 1.31700, respectively. We recommend opening positions from these marks. The trading instrument has the potential for further reduce.

The news feed on the economy of Canada is calm.

The price has fixed below 50 MA and 200 MA, which indicates the power of sellers.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell USD/CAD.

Stochastic Oscillator is near the overbought zone, the %K line is crossing the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.31400, 1.31000

Resistance levels: 1.31700, 1.32200, 1.32700

If the price fixes below the support of 1.31400, we recommend looking for entry points to the market to open short positions. The movement is tending to the round level of 1.31000.

Alternative option. If the price fixes above 1.31700, the USD/CAD quotes are expected to rise. The target movement level is 1.32200-1.32500.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 110.856

Open: 110.555

% chg. over the last day: -0.42

Day's range: 110.459 – 110.504

52 wk range: 104.56 – 114.74

Yesterday, there were aggressive sales on the USD/JPY currency pair. The decrease in quotes exceeded 80 points. At the moment, the technical pattern is ambiguous. The trading instrument is in a sideways trend. The key support and resistance levels are 110.300 and 111.600, respectively. Positions should be opened from the key levels. We recommend paying attention to the 10-year US government bonds yield.

The news feed on the economy of Japan is calm.

Indicators do not send accurate signals: the price has fixed between 50 MA and 200 MA.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell USD/JPY.

Stochastic Oscillator is located in the neutral zone, the %K line is crossing the %D line. There are no accurate signals.

Trading recommendations

Support levels: 110.300, 110.000, 109.700

Resistance levels: 110.600, 110.900

If the price fixes below the support level of 110.300, we recommend considering sales of USD/JPY. The movement is tending to 110.000-109.800.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.